CFOs face the ongoing battle of navigating uncertain market conditions, time taken to attain an accurate view of their cash flows, margin compression, rising costs….and the list goes on.

Our very own business continues to consider how efficient we are, how scalable we are and whether or not we are appropriately positioned to continue providing an exceptional service to our clients. We refuse to rest in the comfort that we have done all that we can.

We need to keep focussing on getting stronger, quicker and consistently stretching ourselves. If not, we will battle to ensure our own cash flow efficiency, ability to add true and measurable value and ultimately be sustainable.

When the business was started just over 10 years ago, the founders made a bold decision. To start the business as a paperless business! Today, coming into our offices you will be hard-pressed to find a printer, reams of paper or stationary cupboards. This is something which I believe has proven to be a foundation which has stood us in good stead. Our internal conversations almost all include discussions around how we get more efficient, how do we assist our clients in being more efficient and ultimately provide bottom line results.

With time having passed, system integration has become more essential than ever. Not only does it provide a foundation for enhanced efficiency, reduced costs, ensured compliance, better flow of information between our people but it also puts us in a stronger position when it comes to informed decision making.

Real time, accurate information that one can trust is key.

That said, navigating integration, cloud-based vs non-cloud-based software, ERPs, CRMs, banking software, payroll systems is no easy task. Perhaps the easiest way to simplify and get practical is to share some of what we have learned over time.

System integration in the finance function

As your business grows and scales, so does the complexity of its financial operations.

Integration brings together disparate systems. Providing that you make use of systems which are able to connect to one another, you are able to create connections between the various systems thus providing a more cohesive system/information source which is reliable.

Being a business which assists our clients with cash flow optimisation and growth, we need to be able to walk the walk. For us, we feel it critical to have a in-time/real time view of our cash flows.

When looking at cash flow our philosophy is to start with the strategy of the business. Where is it going, what is the strategy, does the cash flow support the plans?

We look at the way money flows from strategy, through the operations, supply chain, the value chain, the accounting and operational systems and to the point where money comes into or leaves the bank account.

This is done by using accounting and payroll software which are integrated. This is further enhanced by a direct connection to our treasury management system. This system acts as the businesses engine. It in turn has a direct link to our banking partners. In short, an integrated ecosystem.

The result:

• Financial records are synchronised, up to date and reliable
• Data is shared automatically
• Manual work is minimised
• Both human error and fraud risk is managed
• Strong governance is in place
• Data is secure
• Tasks have shifted from being transactional to strategic
• Accurate, complete, valid & timeous data for decision making
• People of freed up from non-value adding administration and tasks

Isolated silos, disparate systems and manual calculations are transformed into one unified and reliable source of truth.

Having discussed some of the benefits we have experienced and assisted our clients with, we still see many businesses hesitant.

So what is the downside?

Concerns around additional costs associated with systems and hidden consulting fees, adoption by their people (people take comfort in the way things are being done, what happens to my role if we automate?), taking on a “project” when there is so much on our plate, is the benefit quantifiable, and the list goes on.

All very reasonable and fair concerns.

Considering integration?

Partner with people who understand your needs:

• A partner who has been in your seat, understands the finance function and the way information should flow will be best suited to scoping and offering something which will work for you.
• A partner who will scope your needs and ensure that the systems you opt for are fit for purpose, address your needs and suit you business. Looking for the solution which will best suit you is key.
• A partner who will assist you in cutting costs and positioning for scale. Eliminating the need for expensive on-premise services and software maintenance is tangible.
• A partner who provides you with a transparent pricing proposal. Hidden costs quickly stack up and are not necessary. Subscription based models that can expand to your business needs as you scale provide real bottom line benefit. As they say, why pay for the Rolls Royce model if you don’t need it.
• A partner who will assist you in getting the best from your systems. Why integrate if you will still need to manually create budgets, cash flow forecasts, etc?
• A partner who understands your pressures, the time investment to implement efficiently and in the least disruptive way works well. A blue print designed to suit your needs, time line and aspirations can be presented to you. Discussing and agreeing a stepped approach is often better and provides better medium to long term results.

Transforming processes to boost revenue, profitability, financial control leads to stronger cash flow.

Optimising your cash flow cycle is a multifaceted topic. We are passionate about business and would love to discuss ways to enhance yours.

Contact Jacky Buys at jbuys@wauko.com and/or 021 819 7829